Health Maintenance Organization Act of 1973


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Health Maintenance Organization Act of 1973

Legislation in the United States that offered grants and other incentives to start or expand a health maintenance organization (HMO), which is a nonprofit organization offering health insurance to a group of people at the same monthly premium. It also required companies with more than 25 employees to offer employees the option to buy into an HMO if these companies also offered standard health insurance. (This latter provision expired in 1995.) The Act made HMOs a popular health insurance choice for many companies and individuals.
References in periodicals archive ?
The Health Maintenance Organization Act of 1973 gave rise - through grants and loans - to the start of managed care.
Those whose memories stretch back more than two news cycles might even remember that the Health Maintenance Organization Act of 1973 emerged out of widespread public disgust with a fee-for-service system then run by doctors.
Nixon signed into law the Health Maintenance Organization Act of 1973, creating the managed care industry as we know it today.

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